On Monday, PostNL (PTNL.AS) reported an unexpected first-quarter operational profit, supported by a smaller-than-expected package volume decline and last year’s adaptive measures.
As demand normalizes and rising inflation erodes consumer confidence, PostNL, Deutsche Post (DPWGn.DE), and FedEx (FDX.N) parcel volumes have decreased from pandemic highs.
PostNL, which delivers parcels and letters in Belgium, the Netherlands, and Luxembourg, reported a 78% drop in normalized earnings before interest and taxes (EBIT) to 7 million euros ($7.7 million), exceeding analysts’ projections of a 2 million euro loss.
The company said that optimizing routes, workers, and vehicles and managing indirect expenses helped.
PostNL’s package delivery revenue fell 6.5% to 81 million euros, below analysts’ 8% projection.
“Overall, we are satisfied with the start of year, which has shown the positive effect from the necessary steps taken to mitigate the impact of the macroeconomic situation and inflationary pressure on our volumes and costs,” CEO Herna Verhagen said.
PostNL confirmed its full-year normalized EBIT objective of 70–100 million euros and free cash flow target of 10–40 million euros.
